Bhubaneswar, Sept 16 (KNN) The Odisha government has announced a one-time grant or financial assistance for MSMEs of up to 2 per cent of the total capital raised by the company from NSE or BSE or 20 per cent of the expenditure incurred for raising capital from NSE or BSE, subject to a ceiling of Rs 10 lakh on successful listing.

The state government aims to encourage MSMEs towards listing on stock exchanges.

According to a notification by the MSME Department of the state government earlier this month, the MSMEs, after getting listed in NSE/BSE, can make written application to MSME Department.

Giving all relevant details and documentary evidence regarding getting listed in NSE/BSE and capital raised by such listing.  

If their claim is found to be genuine, financial incentive amount will be directly credited to their bank account by the MSME Department within 30 days from the date of receipt of their application, according to the notification. 

“MSMEs are generally dependent on conventional sources of capital like banks, financial institutions, friends and relatives. But the extent to which capital can be raised by MSMEs from these conventional sources is very limited. One way by which MSMEs can solve their problem of access to capital is by getting listed in stock exchanges and thereby raising capital from the stock market,” the department said in the notification. 

MSMEs will have to self-assist copies of documents including certificate of incorporation/ partnership deed, board resolution/power of attorney, Udyam registration certificate/ proof of EM ii registration, change of land use (CLU)/NOC from a competent authority, as applicable, statement of expenditure (annexure ii) with expense vouchers/bills, copy of SME exchange registration/permission, copy of application form prepared by enterprise for equity capital issue, copy of public issue brochure. 

CA certificate for expenses towards raising equity capital and listing on the exchange, proof for commencement of commercial production (recent sale bills of last 3 pos), bank account details/ copy of cancelled cheque and pan number card and declaration form.

The application form to file for assistance will require name and enterprise details, Udyam number, date of commencement commercial production, proof for commencement of commercial production, name of SME exchange, copy of SME Exchange registration/permission, name and address of Registrar of Capital Issue and Banker of Capital Issue, total cost of project/listing, means of finance, date of capital issue published and total amount of equity capital for which capital issue is arranged.   (KNN Bureau)